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H 1482

An Act to establish an accessory dwelling unit trust fund

194th Legislature (2025-2026) Introduced by Mike Connolly and 10 co-sponsors

Creates an Accessory Dwelling Unit Fund to finance ADU construction for eligible homeowners (up to 110% AMI) with grants/loans through state housing agencies.

Bill reported favorably by committee and referred to the committee on House Ways and Means
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Bill Summary · H 1482

Summary of H.1482: An Act to establish an accessory dwelling unit trust fund

Overview

H.1482 proposes creating a dedicated Accessory Dwelling Unit (ADU) Trust Fund in Massachusetts to support low- and moderate-income property owners—defined as those with income up to 110% of the area median income (AMI) per HUD. The fund would finance the construction or development of ADUs through grants, loans, or other financial assistance, with the aim of expanding affordable housing options and increasing housing supply through accessory dwelling units.

Purpose and intent

  • Establish a permanent funding mechanism (the ADU Fund) to help eligible homeowners build ADUs.
  • Target homeowners whose incomes are at or below 110% of AMI to expand affordable housing options without displacing current residents.
  • Leverage existing state housing agencies and programs to administer and deliver financial assistance for ADU projects.

Key provisions

Section 1 – Definitions

  • Defines “Accessory Dwelling Unit” consistent with MGL Chapter 40A, Section 1A.
  • Defines “Eligible Participant” as a property owner with income up to 110% of AMI.
  • Defines “Fund” as the Accessory Dwelling Unit Fund established in Section 2.

Section 2 – Establishment and administration

  • Creates the Accessory Dwelling Unit Trust Fund.
  • Administered by the Executive Office of Housing and Livable Communities (EOHLC) or through contracts with one or more administering agencies:
    • Community Economic Development Assistance Corporation (CEDAC), established in Chapter 40H.
    • Massachusetts Housing Partnership Fund (MHPF), established in §35 of Chapter 405 of the Acts of 1985.
    • Massachusetts Housing Finance Agency (MassHousing), established in Chapter 708 of the Acts of 1966.
  • Administering agencies may directly provide financial assistance or subcontract with non-profit organizations under Chapter 180, and may set additional program requirements via regulations or guidelines.

Section 3 – Funding sources

  • Fund is replenished from:
    • Appropriations or other money designated for the fund.
    • Gifts, grants, private contributions.
    • Repayment of loans, fees/charges related to loans, grants, subsidies, and other financial assistance.
    • Investment income on the fund’s assets.
    • Other sources.
  • Funds that are not expended do not revert to the General Fund at fiscal year end.

Section 4 – Authorized uses

  • Expenditures may be in the form of grants, loans, or other financial assistance to eligible participants.
  • Eligible costs include pre-development and non-recurring closing costs (e.g., architectural/design, site prep, utility connections, impact/permitting fees, etc.).
  • Assistance must be the minimum amount necessary to make a project feasible.
  • May finance low- or no-interest loans, grants, subsidies, credit enhancements, and other financial instruments to support ADU construction/development; again, minimum necessary.

Section 5 – Regulations and guidelines

  • EOHLC may promulgate regulations for implementation, administration, and enforcement.
  • In consultation with the Executive Office of Economic Development, may issue guidelines for the fund.

Who would be affected

  • Eligible homeowners with incomes up to 110% of AMI who seek to build ADUs on their properties.
  • Administering agencies (EOHLC, CEDAC, MHPF, MassHousing) that would finance and manage the program.
  • Potentially, non-profit organizations and contractors involved in ADU development through subcontracts.

Implementation timeline and status

  • Introduced: February 27, 2025.
  • Referred to Housing (02/27/2025); Senate concurrence noted.
  • Reported favorably by committee and referred to House Ways and Means (date shown in legislative actions: November 6, 2025).
  • Legislative actions indicate ongoing consideration, with hearings previously scheduled (e.g., June 25, 2025) and potential further action by Ways and Means.

Related notes

  • HD 3790 is the House version that replaces prior drafts.
  • The bill outlines a framework rather than a specific appropriation amount; funding would come from designated appropriations and other sources.

Potential impact

  • Could lower upfront costs for ADU development for eligible homeowners, expanding affordable housing stock.
  • Creates a administrative and financial structure leveraging existing state housing agencies.
  • Ensures that unspent funds remain within the program for ongoing use, rather than reverting to the General Fund.

Compiled from official sources — confirm details with the bill’s official record.

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